There are three boxes, one contains only apples, one contains only oranges, and one contains both apples and oranges. The boxes have been incorrectly labeled such that no label identifies the actual contents of the box it labels. Opening just one box, and without looking in the box, you take out one piece of fruit. By looking at the fruit, how can you immediately label all of the boxes correctly?”

Idiot – that’s what I am. It’s such a simple question that I wasnt able to figure it out but yet had to go and search out other answers.

Step 1: Open the label that says Apple and Orange. Since this is labelled wrongly, so if you take out an apple, it means the correct label is apple.

Step 2: So the remaining boxes states Apple and Orange respectively.
So since the other two boxes are labelled wrongly as well, this means, the Apple-labelled box obviously contains orange.

Step 3: That leaves us with the box which says Orange on the outside. The correct label is thus Apples & Oranges.

Simple as that!! Why did I not think of that?