In "Squidward, the Unfriendly Ghost," SpongeBob and Patrick accidentally destroy a life-sized sculpture Squidward made of himself. Naturally, SB and Pat think it was the real Squidward, and that they've killed him. When Squidward emerges from the bath, clad in a white robe and towel wrapped around his head, SB and Pat believe it is his ghost, returned from the grave to seek vengeance. Squidward uses this to his advantage, and has the two do his bidding.
SpongeBob: I don't know how to say this, but our old pal Squidward, he's...he's pushing up the daisies.
Patrick: Oh, I thought he was dead.
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SpongeBob and Patrick scurry around Bikini Bottom, carrying Squidward on their shoulders...
SpongeBob: Here?
Squidward: Too hot.
SpongeBob: Here?
Squidward: Too wet. Keep going, keep going.
(the three enter a painting resembling the work of a famous artist)
SpongeBob: Here?
Squidward: Toulouse-Lautrec!
(rim shot)
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SpongeBob (standing over a freshly-dug grave): Oh look, the mourners have arrived!
Mr. Krabs: Oh Squidward, we all came as soon as we were sure you were dead.
Squidward: SpongeBob, are you trying to put me in the nuthouse?
SpongeBob: No, just into this hole.
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Squidward: SpongeBob, I have a confession to make...(takes off towel wrapped around head)
SpongeBob (gasps): You're bald?!
Squidward: No, I'm not bald! I'm alive!