Using old iPhone as iPod

Hi there, I hope someone can help.
I have the iphone 5 and lent my daughter my old iphone 4 as she had her's stolen. Her contract came up for renewal and she has a new iphone now and consequently has given me back my my old iphone 4. My question is: as she has now wiped the phone of any information, will I be able to set up and re-use it as an ipod with my information. I do not want to jeopardise anything being removed from my current iphone 5 by re-activating my old phone. Can this be done??

Sure. Read here:
https://discussions.apple.com/article/HT3406

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