During lunch hour at school, a group of five boys from Miss Jones' home room visited a nearby lunch wagon. One of the five boys took a candy bar without paying for it. When the boys were questioned by the school principal, they made the following statements in respective order:

1. Rex: "Neither Earl nor I did it."

2. Jack: "It was Rex or Abe."

3. Abe: "Both Rex and Jack are liars."

4. Dan: "Abe's statement is not true; one of them is lying and the other is speaking the truth."

5. Earl: "What Dan said is wrong."

When Miss Jones was consulted, she said, "Three of these boys are knights, but two are liars." Assuming that Miss Jones is correct, can you determine who took the candy bar?

If Abe were a knight R&J would be liars, leaving D&E also as knights.  If Dan were a knight his statement would contradict Abes==>Abe is a liar. With Abe having to be a liar Dan has to be a knight.  With Dan having to be a knight A and R or J are liars, leaving Earl as a knight. If Earl is a knight, Dan is a liar, another contradiction. Or if Earl is a liar, there are too many liars.  This point was brought up by kyju, realized by Yocko, restated by Zipp Dementia and now again by me.

Initially if we say Abe is a liar, then Abe did indeed do it as many came up with.  Only when we examine further do we see that there may be too many liars.  I initially came up with the same solution until examining it further.

If we k,Y,ZD and john(I) are wrong please show us where.