Ok, earlier this week, the Marine Service took both the engine and transom assy.and drive out. I was called to come down to the Marine Service for a look at the boat transom and the outdrive unit. They had taken the transom assy. off of the drive. The drive looks fine, as does the engine. The block of the engine (pistons, rods, etc.) was replaced in June of 2012, along with new alternator, belts, plugs and plug wires.
Transom Assembly: The transom assy. looked pretty bad, including half of it was corroded and a small steering shaft bolt was loose. It was determined that we needed a new transom assy. and, from looking at it, I agreed.
Boat Transom: I took a look at the boat transom itself. A guy, he redone our cuddy cabin floor and has a fiberglass/detail business next door, came over to tell me what he had seen. I could definitely rotting in outdrive opening outside the boat. The guy brought a hammer. We both got inside the boat and he showed me, by tapping the hammer head, the unsolid areas around the outdrive opening that had to be replaced. Not the entire transom has to be replaced, but a certain amount around the outdrive opening does and I agreed with that.
So, right now the boat is back in the dry storage rack awaiting the materials to come in to fix our transom. Got an estimate of $1,800 for that. He told me "good marine wood is costly".
The Mercruiser Transom Assy. will cost us $2,535 new. So, including the engine/outdrive removal, new transom assy. and both reinstalled into our boat, the cost (labor, part, water test) will be (estimate w/tax) $4,700. Labor is $99 an hour, but they are helping us with the cost by taking a couple of hundred off of labor. Labor is 17 hours. This $4,700 also includes removal of our old carb and install of remanufactured carb with a water test. That water test was when the bad leak was seen.
So, have to go with the cost since the engine and outdrive are both out of the boat..