given the differences in the lh 2.2 and 2.4 systems, you gonna need to swap EVERYTHING from the 240 motor to the 740 motor. strip the 740 motor to just the oil pan, valve cover, timing. you'll need the dist, flywheel, crank sensor-providing it can be mounted correctly-, cam plug for the head, all the sensors from the 240 motor.

trust me, do the head gasket. if you need a head, the 88 will do fine.

The answers to your questons are almost certainly No and No.

You're trying to move a complete LH2.2 engine that is outfitted for a 740 engine compartment into an LH2.4 car and 240 engine compartment. Right from the start it's a completely different ECU, ignition, sensors and associated wiring. Even if the engines were identical, the 240 and 740 wiring harnesses are quite different, not to mention all the other physical constraints and mounting differences in the engine compartments.

The rear mounted distributor is only one of many issues. With enough effort, some machining and a fair bit of parts swapping, moving the distributor from the back of the cam to side mounted driven off the intermediate shaft may actually be possible, but not at all what I would call feasible. The distributor drive gear would appear to be the least of your worries. I looked at the engine schematics and to my surprise the intermediate shaft (Volvo calls it the counter shaft) in the 740 B230F appears to still have the distributor drive gear, same part number as for the 240 B230F, with fitments listed as unchanged from 1985 through to the 1990s.

If you're not up to simply replacing the blown head gasket in your 240 then I rather suspect that you'd find the contemplated engine swap overwhelming.

I'll be interested to see what other reasons people come up with that I may not be thinking of off the top of my head..
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Dave -still with 940's, prev 740/240/140/120 You'd think I'd have learned by now