Outlook 2016 and iCloud e-mail problem...

I upgraded from Office for Mac 2011 to Office for Mac 2016 and am encountering the following problem:

1. I have two different e-mail accounts where the first is an Exchange Server account and the second is an iCloud account. The below described problem does not occur with the Exchange server account but does occur with the iCloud account.

2. In Mail and my iCloud account: If i) I delete an e-mail from my inbox folder the e-mail appears in my deleted messages folder (i.e. as it should) and ii) I drop and drag an e-mail from my inbox folder to my deleted messages folder the e-mail appears in my deleted messages folder (i.e. as it should). So there is no problem with the Mail / iCloud account combination.

3. In Outlook 2016 and my iCloud account: If i) I delete an e-mail from my inbox folder the e-mail disappears (i.e. it does not appear in my deleted messages folder [or anywhere for that matter] as it should) and ii) I drop and drag an e-mail from my inbox folder to my deleted messages folder the e-mail appears in my deleted messages folder (i.e. as it should). So there is a problem with the Mail / iCloud account combination.

4. In Outlook 2016 and my iCloud account: The folders are configured as illustrated in the attachment.

https://www.dropbox.com/s/bckmsb4e09biwvj/20151201_outlook%202016_icloud%20accou nt_folder%20configuration.png?dl=0

Please help me solve this issue.

Thanks,

Joel