A spacetime diagram might help elaborate on the comment and answer you have already received.
I am going to use a spacetime diagram on rotated graph paper
so that we can visualize the time and space intervals.

Let each light-clock diamond represent "0.1 sec".
Using Minkowski-right triangle $OPQ$, Alice has velocity $v_{Alice}=PQ/OP=(6/10)c=(3/5)c$ with respect to B. The time-dilation factor $\gamma=\frac{1}{\sqrt{1-v^2}}=5/4$.
[In terms of rapidity $\theta$ (the Minkowski analogue of angle, where $v_{Alice}=\tanh\theta$, we have $\gamma=\cosh\theta=\cosh({\rm arctanh}(v))$.]
For part a)...
Alice arrives at event E.
According to Bob, event B on his worldline is simultaneous with E.
(BE is parallel to the spacelike diagonal of Bob's light-clock diamonds.)
So, when Bob says "Alice is $9\times10^{7}\rm\ m$ away",
we have $BE=9\times10^{7}\rm\ m=9\times10^{7}\rm\ m\left(\frac{c}{3\times10^{8}\rm{\ m/s}}\right)=0.3\rm{\ light-sec}$,
and thus $OB=BE/v_{Alice}=(0.3)/(3/5)=0.5$.
Then, since time-dilation in triangle OBE with hypotenuse OE
implies $\gamma=\cosh\theta=\frac{ADJ}{HYP}=\frac{OB}{OE}$,
we have $OE=OB/\gamma=(0.5)/(5/4)=0.4$, as you said.
For part (b)...
I will rephrase "When Alice’s clock reads 0.4s, what does Bob’s clock read?"
as "When Alice’s clock reads 0.4s, what does Alice say Bob’s clock reads [at the event E' on Bob's worldline that Alice says is simultaneous with event E on her worldline]?"
According to Alice, event E on her worldline is simultaneous with E' on Bob's worldline.
(EE' is parallel to the spacelike diagonal of Alice's light-clock diamonds.)
Since time-dilation in triangle OEE' with hypotenuse OE'
implies $\gamma=\cosh\theta=\frac{ADJ}{HYP}=\frac{OE}{OE'}$,
we have $OE'=OE/\gamma=(0.4)/(5/4)=0.32$, as you said.
[Note that $|EE'|\neq |BE|$.]
So, as others have implied, Alice and Bob disagree about which event on Bob's worldline is simultaneous with event E on Alice's worldline.
The spacetime diagram [on rotated graph paper] and its geometric/trigonometric interpretation hopefully makes this clearer [as compared to merely using a formula... without recognizing these interpretations].