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\begin{array}{l}\phantom{1000)}\phantom{1}\\1000\overline{)1040}\\\end{array}
Use the 1^{st} digit 1 from dividend 1040
\begin{array}{l}\phantom{1000)}0\phantom{2}\\1000\overline{)1040}\\\end{array}
Since 1 is less than 1000, use the next digit 0 from dividend 1040 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}0\phantom{3}\\1000\overline{)1040}\\\end{array}
Use the 2^{nd} digit 0 from dividend 1040
\begin{array}{l}\phantom{1000)}00\phantom{4}\\1000\overline{)1040}\\\end{array}
Since 10 is less than 1000, use the next digit 4 from dividend 1040 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}00\phantom{5}\\1000\overline{)1040}\\\end{array}
Use the 3^{rd} digit 4 from dividend 1040
\begin{array}{l}\phantom{1000)}000\phantom{6}\\1000\overline{)1040}\\\end{array}
Since 104 is less than 1000, use the next digit 0 from dividend 1040 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}000\phantom{7}\\1000\overline{)1040}\\\end{array}
Use the 4^{th} digit 0 from dividend 1040
\begin{array}{l}\phantom{1000)}0001\phantom{8}\\1000\overline{)1040}\\\phantom{1000)}\underline{\phantom{}1000\phantom{}}\\\phantom{1000)99}40\\\end{array}
Find closest multiple of 1000 to 1040. We see that 1 \times 1000 = 1000 is the nearest. Now subtract 1000 from 1040 to get reminder 40. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }40
Since 40 is less than 1000, stop the division. The reminder is 40. The topmost line 0001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.