XYZ Corporation has not adopted ASC 740. Its balance sheet is as follows:

Fixed Assets $ 800 Note payable Equity

800

$ 600 200 800

Assume a tax rate of 30%. Because of accelerated depreciation, the tax basis of the fixed assets is $100. The book basis of the assets is $800, which is also the fair market value.

If XYZ sells its assets for $800, can it pay off its note payable with its after tax proceeds?