You can do a differential compression test, sometimes called a leakdown test. There are tools made for this, but if you have an air compressor and a pressure regulator you can approximate the test yourself. First put the cylinder on top dead center of the cylinder with low compression. You will need to hold the crankshaft in that position, so either put the car in gear (manual transmission) and set the parking brake, or lock the crankshaft with Volvo tool 5284. There are instructions in the 700/900 FAQ for making the equivalent of Volvo tool 5284. Make or buy a fitting to screw into the spark plug hole (of the affected cylinder) and to connect to the regulated shop air. Connect the regulated air to the adapter fitting and gradually turn the air pressure up with your adjustable air regulator. You will hear air leaking from the cylinder. If the air leaking sound is from the oil fill, you have bad piston or rings. If the air leaking sound is from the exhaust, the leak is from the exhaust valve. If the leaking air sound is from the throttle body, the leak is from the intake valve. Chances are best that you have a bad exhaust valve.
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