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\begin{array}{l}\phantom{3040)}\phantom{1}\\3040\overline{)3960}\\\end{array}
Use the 1^{st} digit 3 from dividend 3960
\begin{array}{l}\phantom{3040)}0\phantom{2}\\3040\overline{)3960}\\\end{array}
Since 3 is less than 3040, use the next digit 9 from dividend 3960 and add 0 to the quotient
\begin{array}{l}\phantom{3040)}0\phantom{3}\\3040\overline{)3960}\\\end{array}
Use the 2^{nd} digit 9 from dividend 3960
\begin{array}{l}\phantom{3040)}00\phantom{4}\\3040\overline{)3960}\\\end{array}
Since 39 is less than 3040, use the next digit 6 from dividend 3960 and add 0 to the quotient
\begin{array}{l}\phantom{3040)}00\phantom{5}\\3040\overline{)3960}\\\end{array}
Use the 3^{rd} digit 6 from dividend 3960
\begin{array}{l}\phantom{3040)}000\phantom{6}\\3040\overline{)3960}\\\end{array}
Since 396 is less than 3040, use the next digit 0 from dividend 3960 and add 0 to the quotient
\begin{array}{l}\phantom{3040)}000\phantom{7}\\3040\overline{)3960}\\\end{array}
Use the 4^{th} digit 0 from dividend 3960
\begin{array}{l}\phantom{3040)}0001\phantom{8}\\3040\overline{)3960}\\\phantom{3040)}\underline{\phantom{}3040\phantom{}}\\\phantom{3040)9}920\\\end{array}
Find closest multiple of 3040 to 3960. We see that 1 \times 3040 = 3040 is the nearest. Now subtract 3040 from 3960 to get reminder 920. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }920
Since 920 is less than 3040, stop the division. The reminder is 920. The topmost line 0001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.