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\begin{array}{l}\phantom{8500)}\phantom{1}\\8500\overline{)10454}\\\end{array}
Use the 1^{st} digit 1 from dividend 10454
\begin{array}{l}\phantom{8500)}0\phantom{2}\\8500\overline{)10454}\\\end{array}
Since 1 is less than 8500, use the next digit 0 from dividend 10454 and add 0 to the quotient
\begin{array}{l}\phantom{8500)}0\phantom{3}\\8500\overline{)10454}\\\end{array}
Use the 2^{nd} digit 0 from dividend 10454
\begin{array}{l}\phantom{8500)}00\phantom{4}\\8500\overline{)10454}\\\end{array}
Since 10 is less than 8500, use the next digit 4 from dividend 10454 and add 0 to the quotient
\begin{array}{l}\phantom{8500)}00\phantom{5}\\8500\overline{)10454}\\\end{array}
Use the 3^{rd} digit 4 from dividend 10454
\begin{array}{l}\phantom{8500)}000\phantom{6}\\8500\overline{)10454}\\\end{array}
Since 104 is less than 8500, use the next digit 5 from dividend 10454 and add 0 to the quotient
\begin{array}{l}\phantom{8500)}000\phantom{7}\\8500\overline{)10454}\\\end{array}
Use the 4^{th} digit 5 from dividend 10454
\begin{array}{l}\phantom{8500)}0000\phantom{8}\\8500\overline{)10454}\\\end{array}
Since 1045 is less than 8500, use the next digit 4 from dividend 10454 and add 0 to the quotient
\begin{array}{l}\phantom{8500)}0000\phantom{9}\\8500\overline{)10454}\\\end{array}
Use the 5^{th} digit 4 from dividend 10454
\begin{array}{l}\phantom{8500)}00001\phantom{10}\\8500\overline{)10454}\\\phantom{8500)}\underline{\phantom{9}8500\phantom{}}\\\phantom{8500)9}1954\\\end{array}
Find closest multiple of 8500 to 10454. We see that 1 \times 8500 = 8500 is the nearest. Now subtract 8500 from 10454 to get reminder 1954. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }1954
Since 1954 is less than 8500, stop the division. The reminder is 1954. The topmost line 00001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.