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\begin{array}{l}\phantom{100)}\phantom{1}\\100\overline{)500}\\\end{array}
Use the 1^{st} digit 5 from dividend 500
\begin{array}{l}\phantom{100)}0\phantom{2}\\100\overline{)500}\\\end{array}
Since 5 is less than 100, use the next digit 0 from dividend 500 and add 0 to the quotient
\begin{array}{l}\phantom{100)}0\phantom{3}\\100\overline{)500}\\\end{array}
Use the 2^{nd} digit 0 from dividend 500
\begin{array}{l}\phantom{100)}00\phantom{4}\\100\overline{)500}\\\end{array}
Since 50 is less than 100, use the next digit 0 from dividend 500 and add 0 to the quotient
\begin{array}{l}\phantom{100)}00\phantom{5}\\100\overline{)500}\\\end{array}
Use the 3^{rd} digit 0 from dividend 500
\begin{array}{l}\phantom{100)}005\phantom{6}\\100\overline{)500}\\\phantom{100)}\underline{\phantom{}500\phantom{}}\\\phantom{100)999}0\\\end{array}
Find closest multiple of 100 to 500. We see that 5 \times 100 = 500 is the nearest. Now subtract 500 from 500 to get reminder 0. Add 5 to quotient.
\text{Quotient: }5 \text{Reminder: }0
Since 0 is less than 100, stop the division. The reminder is 0. The topmost line 005 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 5.