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\begin{array}{l}\phantom{40)}\phantom{1}\\40\overline{)75}\\\end{array}
Use the 1^{st} digit 7 from dividend 75
\begin{array}{l}\phantom{40)}0\phantom{2}\\40\overline{)75}\\\end{array}
Since 7 is less than 40, use the next digit 5 from dividend 75 and add 0 to the quotient
\begin{array}{l}\phantom{40)}0\phantom{3}\\40\overline{)75}\\\end{array}
Use the 2^{nd} digit 5 from dividend 75
\begin{array}{l}\phantom{40)}01\phantom{4}\\40\overline{)75}\\\phantom{40)}\underline{\phantom{}40\phantom{}}\\\phantom{40)}35\\\end{array}
Find closest multiple of 40 to 75. We see that 1 \times 40 = 40 is the nearest. Now subtract 40 from 75 to get reminder 35. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }35
Since 35 is less than 40, stop the division. The reminder is 35. The topmost line 01 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.