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Dad: Hey Chris, you know my friend Tim?
Chris: (Puzzled look) Who?
Dad: You know, Tim and Sandee, in Germany?
Chris: Oh, yeah!
Dad: Well he is sort of like the principal of the school where he works, (actually he's more like a superintendent but I'm talking to an 8 year old here). But, he also teaches a class in the high school. And do you know who's in his class now?
Chris: Who?
Dad: His own son!
Chris: (Really puzzled look! Like this is abnormal)
...
Dad: Hey Chris, what would you think if I was your teacher?

Mom: (smiling...or rather smirking) Daddy, I don't think Chris answered your question.
Dad: I think you're right. Chris, how would you feel if daddy was your teacher?
Chris: (Mentally processing....clearly looking for the most politically acceptable response. This "transcriber" believes he's looking for the answer that won't offend dad.)
Chris: Weird.
(Laughter)
Dad: (With a smile) Weird?
Chris: Yeah, but, well, weird could mean two different things. Like, when I say "weird" I sort of mean "nasty." But sometimes I say "weird" like when something is "cool!" (Side note: Dad needs to work on getting Chris to stop saying "like" so much).
Mom: So weird could mean "nasty" or "cool?"
Chris: Yeah
Mom: So if dad was your teacher, that would be cool then?
Chris: No.
(More laughter, including dad who now redirects the question to his 6 year old.

Dad: Hey Andrew, how would you like it if dad was your teacher in school?
Andrew: I think I would want to snuggle with him!
(Smiles)
Dad: You would, huh?
Andrew: Yeah, and I would want to be the teacher too!
Dad: Hey Andrew, how would you like some dessert? Chris, it's time for bed.
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OK, that last line isn't true. :-)
It amazes me though that an 8 year old can already recognize the complexities of dual relationships. This conversation was definitely worth some laughs.