Funseth Company purchased a five-story office building on January 1, 2014, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2016, construction of a sixth floor was completed at a cost of $1,650,000. Required: Calculate the depreciation on the building and building addition for 2016 and 2017 assuming that the addition did not change the life or residual value of the building.

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A:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.