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Transmission leak advice? 200 1987

So my '87 240 has over 216,000 miles on it. The transmission is leaking like crazy. (Puddle underneath the car when parked/smoke from burnt leaking fluid comes up from underneath the car after driving.)

I took the car to a transmission shop to get an estimate on sealing it as it doesn't seem to have any problems besides the leaking. The guy told me that 85% of the leak was from the rear seal. He told me it would cost $145 to fix that and $685 to replace all of the transmission seals. But he said that the more he takes it apart, the more likely he might see worn internal parts that will also need replacing.

What would you have fixed in this situation??? (I have no experience fixing this kind of thing myself).

G






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