Volvo Repair: 1994 Volvo 850 sedan, oil leaks, oil sending unit

Question
My husband is ASE and has one more test to become a Master. But I want to be in-the-know on this car. We are thinking about purchasing a non running volvo. From what were are told from current owner, the car was run w/out oil and they think the engine is blown. They also seem to think it needs a transmission. But no answer to why they think that. It has sat for 1 & 1/2. My husband will purchase an engine, and a transmission and do the work. However, what else could be wrong and how to find out? And what else is notorious with this car to be wrong? It has 120K on the current engine/transmission. What do you think?

Answer
Dear Gwyneth,
           Good question...
          Ther is a good chance you can save engine...if head is the only failed part...often this is the case.
         Inspect head..after looking at it in a critical eye...remove cover..look for burned oil smell or burned parts...do a compression test...wet and dry...at oil sending unit place mechanical oil press gauge...after adding oil of course..you'll be able to save whole engine..if engine hasn't been driven too far.
       Inspect for oil leaks.
         
                 Good luck Gwyneth,
                       Bilbo
The trannys are very likely to fail if fluid hasn't been changed...also..if car has been very abused,never changed engine oil..bad.