The 1988 Volvo 740 engine design is fairly efficient. If you've maintained it well over the years it should not have a problem passing the California emissions test. Depending on whether the new owner can afford to make any repairs to this Volvo in the unfortunate event it needs minor work should determine whether you send it to California or not. A current smog check in your state should allow you to make this decision more accurately.
Follow the link below to California's Current Emission Cut Off Scores for your Volvo 740. Compare it with your Volvo's current smog check results.
California Emission Cut Scores
