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\begin{array}{l}\phantom{506)}\phantom{1}\\506\overline{)508}\\\end{array}
Use the 1^{st} digit 5 from dividend 508
\begin{array}{l}\phantom{506)}0\phantom{2}\\506\overline{)508}\\\end{array}
Since 5 is less than 506, use the next digit 0 from dividend 508 and add 0 to the quotient
\begin{array}{l}\phantom{506)}0\phantom{3}\\506\overline{)508}\\\end{array}
Use the 2^{nd} digit 0 from dividend 508
\begin{array}{l}\phantom{506)}00\phantom{4}\\506\overline{)508}\\\end{array}
Since 50 is less than 506, use the next digit 8 from dividend 508 and add 0 to the quotient
\begin{array}{l}\phantom{506)}00\phantom{5}\\506\overline{)508}\\\end{array}
Use the 3^{rd} digit 8 from dividend 508
\begin{array}{l}\phantom{506)}001\phantom{6}\\506\overline{)508}\\\phantom{506)}\underline{\phantom{}506\phantom{}}\\\phantom{506)99}2\\\end{array}
Find closest multiple of 506 to 508. We see that 1 \times 506 = 506 is the nearest. Now subtract 506 from 508 to get reminder 2. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }2
Since 2 is less than 506, stop the division. The reminder is 2. The topmost line 001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.