Schweser Question

CFA Level II Equities
#1

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I choose A but this is wrong. They are saying the answer is B which I cant understand how Book Value doesnt increase since Comprehensive Income is part of equity and equity is book value… Can someone help me with this…the part of the answer they gave in relation to BV reads as follow…"Book Value was not affected, however, because the gains were recorded to equity…Isnt equity book value??? Im confused here

#2

Anyone knows the answer to this?

Question states that someone uses the “current rate method of foreign currency translation and reported currency transaltion gains.”

The answer explains

Book Value was not affected, however, because the gains were recorded to equity.

What is the difference between book value and equity? I thought if equity is affected, wouldnt the book value be affected as well?