What is the correct order in which the four limitations on potential losses must be applied?

First, basis; second, at-risk; third, passive; and last, excess business loss.

First, basis; second, passive activity; third, at-risk; and last, excess business loss.

First, excess business loss; second, at-risk; third, basis; and last, passive activity.

First, passive activity; second, basis; third, excess business loss; and last, at-risk.