Index: subversion/libsvn_client/merge.c
===================================================================
--- subversion/libsvn_client/merge.c	(revision 24413)
+++ subversion/libsvn_client/merge.c	(working copy)
@@ -339,18 +339,12 @@
                                 merge_b->merge_options, subpool));
         }
 
-      /* Philip asks "Why?"  Why does the notification depend on whether the
-         file had modifications before the merge?  If the merge didn't change
-         the file because the local mods already included the change why does
-         that result it "merged" notification?  That's information available
-         through the status command, while the fact that the merge didn't
-         change the file is lost :-( */
-
       if (content_state)
         {
           if (merge_outcome == svn_wc_merge_conflict)
             *content_state = svn_wc_notify_state_conflicted;
-          else if (has_local_mods)
+          else if (has_local_mods
+                   && merge_outcome != svn_wc_merge_unchanged)
             *content_state = svn_wc_notify_state_merged;
           else if (merge_outcome == svn_wc_merge_merged)
             *content_state = svn_wc_notify_state_changed;
Index: subversion/tests/cmdline/merge_tests.py
===================================================================
--- subversion/tests/cmdline/merge_tests.py	(revision 24413)
+++ subversion/tests/cmdline/merge_tests.py	(working copy)
@@ -216,7 +216,6 @@
   # case 4, which we'll handle in a second pass.
   expected_output = wc.State(other_wc, {'A/B/lambda' : Item(status='U '),
                                         'A/D/G/rho'  : Item(status='U '),
-                                        'A/D/G/pi'   : Item(status='G '),
                                         'A/D/G/tau'  : Item(status='C '),
                                         })
 
@@ -4526,25 +4525,9 @@
   # this file, to understand why we shorten and chdir() below.
   short_copy_of_A_D_path = shorten_path_kludge(copy_of_A_D_path)
 
-  # We still need to determine how we will handle notification
-  # callbacks for multiple merges into a single versioned resource.
-  # Currently every merge range applied to a target is reported
-  # separately...but eventually we'll probably change the expected
-  # output.
+  # All the file descendants of /A/copy-of-D/ have already been merged
+  # so the only notification we expect is for the added 'umlaut'.
   expected_output = wc.State(short_copy_of_A_D_path, {
-    'G/pi'    : Item(status='G '),
-    'G/rho'   : Item(status='G '),
-    'G/rho'   : Item(status='G '),
-    'G/tau'   : Item(status='G '),
-    'G/tau'   : Item(status='G '),
-    'H/chi'   : Item(status='G '),
-    'H/chi'   : Item(status='G '),
-    'H/omega' : Item(status='G '),
-    'H/omega' : Item(status='G '),
-    'H/psi'   : Item(status='G '),
-    'H/psi'   : Item(status='G '),
-    'gamma'   : Item(status='G '),
-    'gamma'   : Item(status='G '),
     'umlaut'  : Item(status='A '),
     })