diff --git a/[refs] b/[refs]
index e9f2e3d0d69c..74bfb42b4f2b 100644
--- a/[refs]
+++ b/[refs]
@@ -1,2 +1,2 @@
 ---
-refs/heads/master: e00117f14f68d9e54c8aa3d52ebdc76cdbbc4f87
+refs/heads/master: ffba102d75a2e79ac9754841c6cf4a6dd6892c42
diff --git a/trunk/fs/ext2/ialloc.c b/trunk/fs/ext2/ialloc.c
index f0c5286f9342..938dbc739d00 100644
--- a/trunk/fs/ext2/ialloc.c
+++ b/trunk/fs/ext2/ialloc.c
@@ -549,16 +549,12 @@ struct inode *ext2_new_inode(struct inode *dir, int mode)
 
 	sb->s_dirt = 1;
 	mark_buffer_dirty(bh2);
-	inode->i_uid = current_fsuid();
-	if (test_opt (sb, GRPID))
+	if (test_opt(sb, GRPID)) {
+		inode->i_mode = mode;
+		inode->i_uid = current_fsuid();
 		inode->i_gid = dir->i_gid;
-	else if (dir->i_mode & S_ISGID) {
-		inode->i_gid = dir->i_gid;
-		if (S_ISDIR(mode))
-			mode |= S_ISGID;
 	} else
-		inode->i_gid = current_fsgid();
-	inode->i_mode = mode;
+		inode_init_owner(inode, dir, mode);
 
 	inode->i_ino = ino;
 	inode->i_blocks = 0;