That is either a fowler's toad or american toad. Hard to tell from the pictures. Gonna be hard to care for it at that size. They will eat generally anything that will fit in their mouths. Depending on where you live (if it is native), I wouldn't see a problem releasing it - as long as you know for certain your buddy actually caught it. Its doubtful that he would have bought it anywhere - don't know anyone who sells those or who would want to buy them...they are virtually everywhere within their range. Those look like they just recently left the water (week or two maybe.)
