A 45-year-old annuity owner withdraws $15,000 from a deferred annuity that has $10,000 in accumulated earnings and $5,000 in cost basis. Under IRS rules, which portion is subject to ordinary income tax AND the 10% early withdrawal penalty?

• $15,000 taxable, $15,000 subject to penalty
• $10,000 taxable, no penalty applies
• $5,000 taxable, $5,000 subject to penalty
• $10,000 taxable, $10,000 subject to penalty