I am happy to report that washer is now up and running. Evidently the plastic gear inside the transmission was indeed the problem. The grooves were worn down on several areas of the plastic gear which prevented it from engaging and spinning the basket. I replaced it with the new part and it works like a charm.
Except the basket seems to be banging intermittently against the side and it also makes a loud thud right at the end of the spin cycle. Otherwise, it works fine. I did my first load to test it and it was OK except for the thud previously mentioned
JWWebster thanks for all your help. Much appreciated.