What does a Transmission Rebuild Kit cost for a 97 E300D?

Do Dealers Generaly rebuild these or replace with Remans?

My Extended Warenty company will not pay for a reman. They want the dealer to pull it out inspect it and replace the failed part (s). The dealer is giving me a hard time since the warenty inspector only wants to pay for the failed part, not an entire rebuild. They are worried they may get screwed out of labor cost.

What should I do......