H1B Extension with valid I94

[Shyam Srinivas]

My original H1 petition got approved in 2017 for a period of 3 yrs untill 08/31/2020. Got my visa and my dependents visa stamped till 08/31/2020 and entered US and currently in US. Hence I94 shows validity untill 08/31/2020. But i had to file for a location transfer amendment in Feb 2018 and my original petition validity got reduced from Aug 2020 to Dec 2018 (based on SOW end date given at the time of filing location transfer amendment).  Now, my company has filed for an H1 extension in Dec 2018 for me and it is still under process by USCIS.

Question:

1. In my case, since the I94 still shows Aug 2020, the 240 day rule will not apply to me, correct?

2. Even if USCIS takes 1 year to adjudicate, i can continue to stay and work in US, right?