Monique has owned a variable annuity for $10$ years. The entire balance is invested in equity subaccounts. This past year, the value of her annuity increased by $$10,000$ as a result of earnings within the subaccounts. The $$10,000$ in earnings is

A$)$

taxable as ordinary income this year.

B$)$

taxable as a short$-$term capital gain this year.

C$)$

taxable as a long$-$term capital gain this year.

D$)$

not taxable this year.