In the cost-depreciation approach to valuation, the straight method of depreciation is used to compute the accrued depreciation of a property

The straight line method of depreciation involves dividing the cost of an asset by its economic life in years to compute a depreciation charge per year

For example, a warehouse cost $100,000 to construct on a parcel of land that an investor already owned; the warehouse structure has an expected economic life of 15 years

The straight line depreciation charge is the product of dividing the construction cost ($15,000) by its economic life (15 years) to give $8,333,33 per year