Need your opinion

Daughter drives a 2002 Toyota Corolla. Engine is notorious for burning oil due to its seals. Have to put oil in the car occasionally.
She drove the car home and heard engine noise, got off the fwy and car died. Long story short, I checked the oil and it was pretty much empty causing the knocking. I put oil and Lucas Oil additive in it. Knocking went away, so I thought....rev the engine and knocking happens. Talked to a mechanic friend and he said that it is most likely the pinion which is worn and busted due to no oil/lubicant.

This is my question. What would you do? He says, new engine (used one) or donate it. This car sells for around $3000-$3995 when running properly.


Thanks all!!