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\begin{array}{l}\phantom{74)}\phantom{1}\\74\overline{)174}\\\end{array}
Use the 1^{st} digit 1 from dividend 174
\begin{array}{l}\phantom{74)}0\phantom{2}\\74\overline{)174}\\\end{array}
Since 1 is less than 74, use the next digit 7 from dividend 174 and add 0 to the quotient
\begin{array}{l}\phantom{74)}0\phantom{3}\\74\overline{)174}\\\end{array}
Use the 2^{nd} digit 7 from dividend 174
\begin{array}{l}\phantom{74)}00\phantom{4}\\74\overline{)174}\\\end{array}
Since 17 is less than 74, use the next digit 4 from dividend 174 and add 0 to the quotient
\begin{array}{l}\phantom{74)}00\phantom{5}\\74\overline{)174}\\\end{array}
Use the 3^{rd} digit 4 from dividend 174
\begin{array}{l}\phantom{74)}002\phantom{6}\\74\overline{)174}\\\phantom{74)}\underline{\phantom{}148\phantom{}}\\\phantom{74)9}26\\\end{array}
Find closest multiple of 74 to 174. We see that 2 \times 74 = 148 is the nearest. Now subtract 148 from 174 to get reminder 26. Add 2 to quotient.
\text{Quotient: }2 \text{Reminder: }26
Since 26 is less than 74, stop the division. The reminder is 26. The topmost line 002 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 2.