The black dog is standing by the wall next to the orange.
a dog confuses an orange for a ball
Just because he is standing next to a orange does not mean he confuses it for a ball.
exists e1 s1 x1 x2 x3.(n_orange(x3) & n_wall(x2) & n_dog(x1) & a_black(s1) & Theme(s1,x1) & to(e1,x3) & r_next(e1) & by(e1,x2) & Actor(e1,x1) & v_stand(e1))
exists e1 x1 x2 x3.(Theme(e1,x2) & Actor(e1,x1) & v_confuse(e1) & for(x2,x3) & n_ball(x3) & n_orange(x2) & n_dog(x1))