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\begin{array}{l}\phantom{40)}\phantom{1}\\40\overline{)145}\\\end{array}
Use the 1^{st} digit 1 from dividend 145
\begin{array}{l}\phantom{40)}0\phantom{2}\\40\overline{)145}\\\end{array}
Since 1 is less than 40, use the next digit 4 from dividend 145 and add 0 to the quotient
\begin{array}{l}\phantom{40)}0\phantom{3}\\40\overline{)145}\\\end{array}
Use the 2^{nd} digit 4 from dividend 145
\begin{array}{l}\phantom{40)}00\phantom{4}\\40\overline{)145}\\\end{array}
Since 14 is less than 40, use the next digit 5 from dividend 145 and add 0 to the quotient
\begin{array}{l}\phantom{40)}00\phantom{5}\\40\overline{)145}\\\end{array}
Use the 3^{rd} digit 5 from dividend 145
\begin{array}{l}\phantom{40)}003\phantom{6}\\40\overline{)145}\\\phantom{40)}\underline{\phantom{}120\phantom{}}\\\phantom{40)9}25\\\end{array}
Find closest multiple of 40 to 145. We see that 3 \times 40 = 120 is the nearest. Now subtract 120 from 145 to get reminder 25. Add 3 to quotient.
\text{Quotient: }3 \text{Reminder: }25
Since 25 is less than 40, stop the division. The reminder is 25. The topmost line 003 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 3.