HAWK Construction Company is a publicly accountable company that began a contract on January 1, 2019 to build a hotel for a Victoria, B.C. resort for the price of $6,600,000. The hotel is expected to take 3.5 years to complete. For the year ended December 31, 2019, HAWK incurred construction costs of $1,250,000 and the estimated total cost to complete the contract would be an additional $3,750,000. HAWK billed the customer $1,650,000 during the first year and collected $1,450,000 by December 31, 2019. HAWK uses the percentage-of-completion method of revenue recognition. Question 10 (2 points) Ignore the previous question and assume that HAWK follows ASPE and the hotel project is profitable for HAWK. The owner of HAWK is considering use of the completed-contract method. Briefly explain to the owner why this method would not be as good as the percentage-of-completion method (use two concepts from the conceptual framework to support your answer). C 1