diff --git a/parser.c b/parser.c
index 1ba988cf..5ff8592d 100644
--- a/parser.c
+++ b/parser.c
@@ -7159,42 +7159,38 @@ xmlParseReference(xmlParserCtxtPtr ctxt) {
 	     (ent->etype == XML_EXTERNAL_GENERAL_PARSED_ENTITY))&&
 		(ent->children == NULL)) {
 		ent->children = list;
-		if (ctxt->replaceEntities) {
-		    /*
-		     * Prune it directly in the generated document
-		     * except for single text nodes.
-		     */
-		    if (((list->type == XML_TEXT_NODE) &&
-			 (list->next == NULL)) ||
-			(ctxt->parseMode == XML_PARSE_READER)) {
-			list->parent = (xmlNodePtr) ent;
-			list = NULL;
-			ent->owner = 1;
-		    } else {
-			ent->owner = 0;
-			while (list != NULL) {
-			    list->parent = (xmlNodePtr) ctxt->node;
-			    list->doc = ctxt->myDoc;
-			    if (list->next == NULL)
-				ent->last = list;
-			    list = list->next;
-			}
-			list = ent->children;
+                /*
+                 * Prune it directly in the generated document
+                 * except for single text nodes.
+                 */
+                if ((ctxt->replaceEntities == 0) ||
+                    (ctxt->parseMode == XML_PARSE_READER) ||
+                    ((list->type == XML_TEXT_NODE) &&
+                     (list->next == NULL))) {
+                    ent->owner = 1;
+                    while (list != NULL) {
+                        list->parent = (xmlNodePtr) ent;
+                        xmlSetTreeDoc(list, ent->doc);
+                        if (list->next == NULL)
+                            ent->last = list;
+                        list = list->next;
+                    }
+                    list = NULL;
+                } else {
+                    ent->owner = 0;
+                    while (list != NULL) {
+                        list->parent = (xmlNodePtr) ctxt->node;
+                        list->doc = ctxt->myDoc;
+                        if (list->next == NULL)
+                            ent->last = list;
+                        list = list->next;
+                    }
+                    list = ent->children;
 #ifdef LIBXML_LEGACY_ENABLED
-			if (ent->etype == XML_EXTERNAL_GENERAL_PARSED_ENTITY)
-			  xmlAddEntityReference(ent, list, NULL);
+                    if (ent->etype == XML_EXTERNAL_GENERAL_PARSED_ENTITY)
+                        xmlAddEntityReference(ent, list, NULL);
 #endif /* LIBXML_LEGACY_ENABLED */
-		    }
-		} else {
-		    ent->owner = 1;
-		    while (list != NULL) {
-			list->parent = (xmlNodePtr) ent;
-			xmlSetTreeDoc(list, ent->doc);
-			if (list->next == NULL)
-			    ent->last = list;
-			list = list->next;
-		    }
-		}
+                }
 	    } else {
 		xmlFreeNodeList(list);
 		list = NULL;
diff --git a/result/att7.rde b/result/att7.rde
index afcef5fe..60796379 100644
--- a/result/att7.rde
+++ b/result/att7.rde
@@ -5,8 +5,7 @@
 1 1 test 1 0
 1 14 #text 0 1 
     
-1 1 test 0 0
-1 15 test 0 0
+1 1 test 1 0
 1 14 #text 0 1 
 
 0 15 x 0 0
diff --git a/result/ent9.rde b/result/ent9.rde
index 38b9f431..22061467 100644
--- a/result/ent9.rde
+++ b/result/ent9.rde
@@ -12,8 +12,7 @@
 2 1 c 0 0
 2 15 c 0 0
 2 3 #text 0 1 ,
-2 1 d 0 0
-2 15 d 0 0
+2 1 d 1 0
 1 15 ent 0 0
 1 14 #text 0 1 
    
@@ -292,8 +291,7 @@
 2 1 c 0 0
 2 15 c 0 0
 2 3 #text 0 1 ,
-2 1 d 0 0
-2 15 d 0 0
+2 1 d 1 0
 1 15 ent 0 0
 1 14 #text 0 1