Final answer:
The statement is true; in a like-kind exchange, only the net liability assumed by each party would be considered as boot for tax purposes.
Step-by-step explanation:
The question pertains to a like-kind exchange in the context of tax law, particularly involving the treatment of liability assumed by each party. The statement given is that if each party in a like-kind exchange assumes a liability of the other party, only the net liability given or received is boot. This statement is True. In a like-kind exchange, 'boot' is any form of property received in the exchange that is not of like-kind, which can potentially be taxable. When liabilities are exchanged, only the difference (net liability) would be considered boot; if party A assumes a liability of $5,000 and party B assumes a liability of $3,000, only the difference of $2,000 would be considered boot to party B.