Re: older 9.9 powerhead replacement options
Sorry, been quite busy the past week or so.
Your "serial" number, which is really just a production number, does not have any usable information (such as horsepower, year built, plant code etc) encoded into it - it's just a "next off the line" number.
But you are correct - it is in fact a 1987 model.
The 87's shared a powerhead with the 6 and 8 horse motors (all 6, 8 and 9.9's built between 1986 and early 1994 used the exact same powerhead). The 9.9 had a different carb and the exhaust plate/tube was different, but that is easily transferred over to another powerhead.
Unfortunately, these motors were extremely well built and they don't show up very often at recyclers unless the powerhead is shot.
There is a place in Peterborough (Marine Medics) that reman's powerheads, but you will find it "not worth it" on small motors like this. A reman 9.9 powerhead sells for almost $1200 - and they rarely have small Merc powerheads - AND, you can pick up a used 9.9 complete (late 90's vintage) for 300-400 bucks less than that in the used market. So in this particular case, a reman powerhead is probably out of the question.
That leaves you with Ebay or Craigslist (or any of the sites like those) - maybe you can pick-up a 6, 8 or 9.9 that has a toasted lower unit (still pretty rare) - however, in the end you may simply have to find another used motor and use your current one for spare parts - or part it out and sell off the pieces - a good lower unit will bring in a couple hundred bucks, you could pick up another hundred of so for the ignition etc - most motors are worth more if you strip down the parts then they are a whole unit...