Find closest multiple of $400$ to $1000$. We see that $2 \times 400 = 800$ is the nearest. Now subtract $800$ from $1000$ to get reminder $200$. Add $2$ to quotient.
Since $200$ is less than $400$, stop the division. The reminder is $200$. The topmost line $0002$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $2$.
