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A former co-worker called and asked for a favor. When he was with the company, he (ahem!) “borrowed” some old office equipment from storage. He now wants me to return it for him. What should I do? Put it back? Inform my boss?

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It should absolutely be returned to the company, but there's a real danger that it might appear that you are, in fact, the one who did the original "borrowing." Since you appear to still be employed there, I would encourage your friend to be responsible.

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Don't touch it. It should be returned, but you should have nothing to do with it.

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