Don't Count Your Coconuts Before They Crack

[Taken from Maslanka p. 4 with modifications by Stephanie Wilcox and Sam Rebelsky.]

One coconut farmer says to the other coconut farmer, "You have 25% fewer coconuts than I do." The other coconut farmer replies, "Really? Well aren't you a prosperous little coconut farmer! You have 20% more coconuts than I do."

Is this possible? Are they both telling the truth? If so, how can it be true?

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