This is Candy holding onto his dog while Carlson is trying to talk him into Carlson shooting the dog in the back of the head and kill him. At first Candy disagreed with Carlson but then finally agreed.
This is Candy depressed because his dog got shot and killed by Carlson. Carlson thought that it would be a better place the dog due to him being so old. Candy finally did agree with Carlson to put the dog out of his misery.