"Squirrels do not live in the ocean."
Translation:Eichhörnchen leben nicht im Meer.
There are two possible meanings to the English sentence, and I'm confused about how the German corresponds to each:
1) Squirrels (don't + live) in the ocean. They might go surfing, or they might die, but they don't live there.
2) Squirrels live (not + in the ocean). They live on land.
In the first, nicht negates leben, while in the second, nicht negates im Meer. So why do you put nicht after leben for the second meaning, and after im Meer for the first? I would have expected the opposite.
As a German native, I don't see a possibility to put the "nicht" at the end of the sentence. It should be always "Eichhörnchen leben nicht im Meer". The two possible meanings depend on which word you would stress while speaking. "Eichhörnchen leben NICHT IM MEER" stresses the fact that they do not live in the ocean, but on land. "Eichhörnchen LEBEN nicht im Meer" stresses the fact that they do not live in the ocean, but might do other things there.
Das Meer is used as a general term for the water surrounding all continents, while Ozean is usually a specific ocean, like the pacific, atlantic, .... But that's not a strict rule, also Ozean could be accepted here, Meer is just common as a habitat. On the other hand, also Meer can be used in specific names, like Kaspisches Meer, Nordmeer, ....
For everyone wondering about nuances between "leben" und "wohnen", I found this link very helpful: https://german.yabla.com/lesson-Nuances-of-wohnen-and-leben-1099