Ms$.$ Smith$$s books and records reflect the following for Year $2$:

Salary

$$35,000$

Interest on money market account $($credited to her account in Year $1,$ withdrawn in Year $2)$

$1,000$

Interest on money from a long$-$term savings plan from which interest cannot be withdrawn until December $31,$ Year $2,$ but principal can be withdrawn at any time $($she has principal of $$5,000$ and accumulated interest of $$700)$

$500$

What is the amount Ms$.$ Smith must include in her gross income for Year $2?$

A$.$

$$36,500$

B$.$

$$36,000$

C$.$

$$35,500$

D$.$

$$35,000$