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The photo of your transmission does not show the proper rear bearing retainer for the 1940 with an 85 HP engine. When you take it off and clean it you will find the part number embossed into the casting. Below is a photo of the 78- rear bearing retainer note the connection of the ears to the center section and the thickness of the center section. Plus the small ear off the front of the LH mounting bolt loocation.
Didn't we go through this a couple of months ago? Yours being so thick appears like 60HP.