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Let's continue working on colors.  The first house can be either green, red, white or yellow (blue is already assigned to the second house).

The first house can't be green, since:
4. The  green  house is on the  left  of the  white  house (next to it).
and we know already that the first house is left of the blue one, not white.

The first house can't be red either, since:
1. The  Brit  lives in a  red  house.
and we know already that Norwegian lives in the first house, not Brit.

The first house can't be white as well, since:
4. The  green  house is on the  left  of the  white  house (next to it).
but there are no houses at all on the left of the first house.

Hence the only color left for the first house is yellow.
Once the color of the first house is determined, it is possible to fill the cigar cell for that house.
7. The owner of the  yellow  house smokes  Dunhill.

From the above we can determine in which house horses are kept.  We know that:
11. The man who keeps  horses  lives  next  to the man who smokes  Dunhill.
Hence, horses can be kept only in the second house, since it's the only one, which is next to the house of the Dunhill smoker.

 No  1 2 3 4 5
Col yellow blue      
Nat Norw        
Bev     milk    
Cig Dunh        
Pet   horse      

As a possible next step can you figure out what are the colors of the third, fourth and fifth houses?


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