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Just a quick thought. If you found a rear end from another 740/940 it should bolt in fine. However, pay close attention to the year your car is ('86) and the year the donor is. The tone wheels between different years changed and will result in faulty speedo operation. (and ABS operation if you had it) Over the 14 years the 740/940s were made there were ~5 different tone wheels. Go to your dealer to find precise info, but my best guess is that an '85-'87 740 rear should have the same tone wheel as your car. If the donor car had ABS (780/760/740turbo) then the tone wheel might be different. I'm almost certain that anything newer than '88 you will have a different tone wheel.
Beware as replacing the tone wheel requires differential removal. And FINDING the correct tone wheel can be a real nightmare.
good luck!
-simon
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