If the puppy were dead, his hind legs would have been hanging down. Instead, the hind legs were up, meaning a live dog was holding them up.
I can’t make out what the throwing Marine says at the end.
It's a fake. I recognize that as a fake dog sold in magician supply stores for magic acts, and lots of soldiers in Iraq do magic tricks for fun. Besides, in Islam dogs are unclean just like pigs are. The only dogs allowed are guard dogs. Why would there be a purebreed dog in Iraq? There are only working mutts there.