Tecumseh H60

I took the head off, because the head gasket is bad, the whole piston and valves were covered in carbon. I cleaned it all off with a wire wheel and it looked really good, but then I noticed that the cylinder had scratches all over it and a huge line that looks like a ring must have been broken and cut the cylinder wall. Then I nothiced that the intake and exhaust valves are both worn out and need new guides. I will rebuild the engine, but im going to put the K161 on the tractor instead.