Recently purchased a 1987 F250 with 351, auto. Has a 8' western Plow
that was just recently serviced by Western. Truck is a Custom, no
frills The previous owner mentioned that the engine is strong (only
107K as per carfax), it needed exhaust work, and the transmission
takes a second or two to shift from park to drive, after the initial
delay all is OK. Also had new tires and brakes.

I drove this truck from DC (where I purchased it) to Roscoe NY (about
6 hours) with the plow in the truck bed no problems(other than many
stops at gas stations!)

I went to a local gas station in Roscoe for a NY State Inspection and
a once over (first time at this station, new to the area) and I am
told to sell the truck. Told it has major problems. 1 cylinder is
dead and the transmission has a blown seal! Will take approximately
1500-2000. to repair both.

What can I do to check this myself(compression test)? And what would
be the cost of the repairs if they are correct?

Please advise.