Client H1B Transfer in progress and applying for extension through current employer

[pavan5599]

I have been working for a client through a company A. Client offered fulltime position and applied for an H1B transfer. H1B transfer received RFE for specialty occupation and in process of reply. Meantime my current employer wants to apply for my extension.

1) is this okay to apply for the H1b extension when h1b transfer in the process?

2) extension will be applied with the same client contract. is this not going to create any problem?

3) in case, H1B transfer approved and extension denied, what would be the consequences?