How do I know when I can send a Not Modified Response via 304?

server_etag = gen_etag_for_this_file(myfile)
etag_from_browser = get_header("Etag")

if etag_from_browser does not exist:
    etag_from_browser = get_header("If-None-Match")
if the browser has quoted the etag:
    strip the quotes (e.g. "foo" --> foo)

set server_etag into http header

if etag_from_browser matches server_etag
    send 304 return code to browser

/* the client should set either Etag or If-None-Match */
/* some clients quote the parm, strip quotes if so    */
mketag(etag, &sb);

etagin = apr_table_get(r->headers_in, "Etag");
if (etagin == NULL)
    etagin = apr_table_get(r->headers_in, "If-None-Match");
if (etag != NULL && etag[0] == """) {
    int sl; 
    sl = strlen(etag);
    memmove(etag, etag+1, sl+1);
    etag[sl-2] = 0;
    logit(2,"etag=:%s:",etag);
}   
... 
apr_table_add(r->headers_out, "ETag", etag);
... 
if (etagin != NULL && strcmp(etagin, etag) == 0) {
    /* if the etag matches, we return a 304 */
    rc = HTTP_NOT_MODIFIED;
}   

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