Yep it sure can, and you can indeed start a C project for that exact microcontroller in Atmel Studio and generate a horribly formatted assembly file and a '.hex' file.
The only drama is the code has been written in assembly so it would need to be painstakingly manually converted to C. While it is doable, it would take me months, and I'd probably break a heap of things too. If you knew the code back to front (like someone from HobbyKing maybe?) it wouldn't take long to convert it to C.
Personally I prefer C code because the compiler can generate "optimum" assembly/machine code for any given function, it would probably drastically reduce the footprint of the program too (some people may disagree, compilers can do funny things sometimes).
C to Assembly is relatively easy, Assembly to C is difficult but doable if you know what you are doing.
The only drama is the code has been written in assembly so it would need to be painstakingly manually converted to C. While it is doable, it would take me months, and I'd probably break a heap of things too. If you knew the code back to front (like someone from HobbyKing maybe?) it wouldn't take long to convert it to C.
Personally I prefer C code because the compiler can generate "optimum" assembly/machine code for any given function, it would probably drastically reduce the footprint of the program too (some people may disagree, compilers can do funny things sometimes).
C to Assembly is relatively easy, Assembly to C is difficult but doable if you know what you are doing.