Long story short I found a really nice phone in the bus today, which should be good but then I start thinking how too nice it is for me to take it.

So what should I do?

1) Treat myself and keep it

2) Hand it over to the police station

Either options am probably happy with since it is pretty careless to lose something like that in the first place ;P

Return it dude. If it was cash I'd say take it, because there's no way to track the owner of cash so really its as good as yours. But something like a cell phone is easy to find the owner so I'd say return it.

Call some of the numbers on the phone and tell them whats up. Then arrange for them to come pick it up from you. You have easy access to the owner of the phone. Taking it is the moral equivalent of theft. If you don't have an issue with essentially picking the man's pocket then keep it.

Keep it, so you can join Severance's "Asshole club."

The problem is the phone was turned off as soon as I turned it on it was locked with only way of getting through is guessing the code.

So what good will keeping it do then?

I can get it unlocked which will cost me money, so even if I hand it over to the police it isn't guaranteed the owner will get it back. So I can blindly guess the number codes or unlock it and call them directly.

Is it sim locked or phone locked? if it a sim lock then put another sim in it if it's phone locked go to a shabby phone shop and let them reset the firmware and keep the phone...

Yes.. be an a-hole.. keep the phone..

Give it back, you might get good karma down the road. 

Then call the police. Imagine if you had lost your phone. Wouldn't you want it back? I'm sure you'll feel much better by returning it than keeping it.